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First Things First
Before you can become a 'Serious Sponsor' in the network marketing industry, you must first join a network marketing company. Unfortunately, most people come into the industry as a result of being invited to a meeting by a friend. At that point, they decide whether or not they like that particular opportunity or not, often without any research of the industry or the company involved. Furthermore, they have had very little time to see if the system that particular team is using, will work for them.
So with no industry research, no product research, and no company research, they head off completely blind and become temporary Evangelist of a business opportunity they have no understanding of. Most successful network marketers have little success until their second or third business opportunity, which is largely because they have finally done their research before joining a network.
But other people are making money with xyz company, I hear you say. Yes they are, but probably not many! If I were going to start car racing, I would not expect the same results as Micheal Schumacher. I would start off racing in a series where I would be competing successfully with people of my own ability. I am not interested where someone else can win as that does not pay the bills, I am interested where I can win. More importantly, I am interested in where the people I recruit can win, as I want them to earn money. If I recruit people into a system where 99% of them will fail, and I do this knowingly, then I am no more that a con-man in a shell game.
How much difference does company really make? Well there are many companies that will pay you £5000 a month, if you have built a team of 2000-10000 distributors, not including the ones that quit. Other companies will pay you £5000 for a team of 500 distributors, including the ones that have quit. Now, I do not know about you, but I got into this industry to make money. If I can make the same money for a team of 500, that someone else needs to recruit 10,000 for, I would say that was a smart move.
How much difference does industry make? Most networks today are pushing over priced, old fashioned pill and potions, some of the products sold by these companies, are literally dangerous. I know you think I am exaggerating, but consider this:
One of the largest network marketing companies in the world, put human growth hormone in over 500,000 tubs of product, without telling its distributors. The owner of this company is now in prison, but the company is over 15 years old, with a turnover of 700 million. What did they put in the other tens of millions of tubs? I guess we will never know.
The owner of another very large network marketing company, much bigger than the first died of "an adult cot death". I had never heard of this before then, and have not heard of it since, and the man was only in his forties. However, friends of mine met him on several occasions leading up to this time, and had commented before his death on his orange colour. People turn orange because of liver failure!
Having had the products of some of these companies professionally tested, most claims are at the very least, exaggerated.
There are other reasons not to get involved in product networks.
90% of distributors will quit in their first twelve months. When they quit they stop selling products and you loose the income from them. If you recruit 100 this year, twelve months later 10 will be active, but they will recruit about 270 before they quit, of which 27 will be active. So in 18 months you may have about 40 active people and maybe another 50 just buying product, if they can afford it.
If you had been in a services network promoting Telephones, Gas, Electric, Mobiles and Internet, then even after the distributors quit, their customers continue to use the services. If you had built the same team of 100 people and the same amount had quit (service networks have a much lower attrition rate), then 80% of them would have got customers. So now you are being paid on eighty reps at the end of the year, not ten, and when they recruit 270, twelve months later you will be being paid on over 200 not just 40-80. But those customers will switch over time, I here you say. One of the leading UK networks is seeing less than a 2% loss per annum on its old multi service customers.
Company management and history is essential, do not in any circumstances join a company less than 10 years old. 90% of companies fail in their first 5 years, and 90% of those left will fail in the next five years. What is the chance of you picking the 1 out of 100 that will survive? If your company is that good, it will be featured in the national press, business magazines and independent product review papers. Not just the network marketing magazines that the companies pay to do a feature on them.
One of the most successful UK networks has been constantly recommended by all of the major newspapers, on television and in the countries number one consumer magazine, as well as business magazines and investors chronicle. I would say that this should all be part of your research.
Lastly, do you think it easier to save someone money on something they are already buying, or to get them to buy goods and services they probably do not buy?
About the Author
Jeff Whenman: Is a marketing professional working in the UK, having spent 15 years in the business, he is now helping others have success of their own.
To find out more visit:www.jeffwhenman.com
